RegAlert2013-03-29 | CFTC Staff Letter 13-04Added · Updated
CFTC Staff Letter 13-04: Relief for Additional Agent Affiliates from Registration as an Introducing Broker or Commodity Trading Advisor
The Division of Swap Dealer and Intermediary Oversight extends no-action relief to Agent Affiliates engaging in Affiliate Support Activities on behalf of Affiliate Pending SD Counterparties, exempting them from registration requirements as introducing brokers or commodity trading advisors. This relief applies if the counterparty has filed Form 7-R or exceeded de minimis swap dealing thresholds but is not yet registered as a swap dealer, provided specific conditions are met including regulatory licensing, absence of statutory disqualifications, and joint liability undertakings. The exemption terminates upon the counterparty's registration as a swap dealer or if registration is not achieved within two months of the triggering event.
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Division of Swap Dealer and Gary Barnett
Intermediary Oversight Director
U.S. COMMODITY FUTURES TRADING COMMISSION
Three Lafayette Centre
1155 21st Street, NW, Washington, DC 20581
Telephone: (202) 418-6700
Facsimile: (202) 418-5528 gbarnett@cftc.gov
CFTC Letter No. 13-04
No-Action
March 29, 2013
Division of Swap Dealer and Intermediary Oversight Re: Staff Positions – Relief for Additional Agent Affiliates from Registration as an Introducing Broker under Section 4d or a Commodity Trading Advisor under Section 4m of the Commodity Exchange Act Pursuant to CFTC Letter No. 12-70 (Dec. 31, 2012) (“Letter 12-70”), the Division of Swap Dealer and Intermediary Oversight (“Division”) of the Commodity Futures Trading Commission (“CFTC” or “Commission”) granted relief to Agent Affiliates (as defined in Letter 12-70 1 ) from the requirement to register as an IB or a CTA in connection with the Agent Affiliates’ Affiliate Support Activities on behalf of an Affiliate SD Counterparty in the circumstances and subject to the conditions set forth in Letter 12-70. 2 By this letter, the Division is extending the relief provided by Letter 12-70 to Agent Affiliates that engage in Affiliate Support Activities on behalf of certain affiliates not yet registered as an SD. In Letter 12-70 the Division stated, among other things, that it would not recommend that the Commission commence an enforcement action against an Agent Affiliate or any employee thereof for failure to register as an IB or a CTA if the Agent Affiliate or employee engages in Affiliate Support Activities on behalf of an Affiliate SD Counterparty in connection with a swap entered or to be entered into by the Affiliate SD Counterparty. The relief was subject to a number of conditions, including, but not limited to, that the Agent Affiliate is registered or licensed with, or subject to regulation by, a financial services, prudential, or banking regulator in certain jurisdictions; that the Agent Affiliate is not subject to a Statutory Disqualification, the employee is not subject to a Statutory Disqualification, and no person in the supervisory chain of command of the employee is subject to a Statutory Disqualification; and that the Agent Affiliate and the Affiliate SD Counterparty execute in writing an undertaking by which they each agree to be jointly and severally liable for any violation of the CEA or Commission regulations by any employee of the Agent Affiliate engaged in any Affiliate Support Activity on behalf of the Affiliate SD Counterparty.
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Source: Commodity Futures Trading Commission — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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CFTC published 6 documents in the last 30 days. We email you each new one the day it's published.